FAQ: Chapter 7 Bankruptcy
What types of debt are discharged in Chapter 7?
Chapter 7 can discharge unsecured debts, such as credit card balances, medical bills, and certain personal loans.
Can I keep my home and car in Chapter 7?
If you reaffirm debts on essential secured property, like a primary residence or vehicle, you may be able to retain them.
How will Chapter 7 affect my credit?
Chapter 7 remains on your credit report for up to ten years, but many find their credit gradually improves due to reduced debt.
Can Chapter 7 stop wage garnishments?
Yes, the automatic stay halts wage garnishments, providing immediate relief as soon as you file.
Will I need to attend court?
You’ll attend a meeting of creditors with the trustee, but additional court appearances are rare in Chapter 7 cases.
FAQ: Chapter 13 Bankruptcy
Can I keep my house and car if I file for Chapter 13 bankruptcy?
Yes, Chapter 13 bankruptcy protects your assets, including your primary residence and vehicle, as long as you include repayment terms for secured debts in your plan.
How long does Chapter 13 bankruptcy remain on my credit report?
Chapter 13 bankruptcy stays on your credit report for seven years, three years less than Chapter 7 bankruptcy.
Will all my debts be included in the Chapter 13 repayment plan?
Chapter 13 covers most debts, including credit cards, medical bills, and some tax debts. However, obligations like child support or certain types of taxes must still be paid in full.
Can I modify my Chapter 13 plan if my financial situation changes?
Yes, Chapter 13 allows modifications if your income changes significantly, helping ensure that your payments align with your current financial position.
What happens if I miss a payment in my Chapter 13 plan?
If you miss a payment, consult your attorney immediately. Missing payments could lead to plan dismissal, so it’s crucial to communicate proactively and explore potential plan modifications.
FAQ: on Debt Settlement
How long does the debt settlement process typically take?
The timeline for debt settlement can vary depending on the complexity of your debt and your creditors’ willingness to negotiate. On average, debt settlement cases can take anywhere from a few months to several years to resolve fully.
Will debt settlement hurt my credit score?
Debt settlement may lower your credit score, but typically not as severely or for as long as bankruptcy. Settling a debt for less than the owed amount can impact your score, but our attorneys work to minimize negative effects by negotiating favorable terms with creditors.
Can I settle debt on my own, or is an attorney necessary?
While it’s possible to attempt debt settlement on your own, having an experienced attorney offers significant advantages. Our attorneys know how to negotiate effectively, understand creditor tactics, and can protect your legal rights throughout the process.
What types of debt can be settled?
Most unsecured debts, such as credit card debt, medical bills, and personal loans, are eligible for settlement. However, certain types of debt, like federal student loans and tax debts, may not qualify for settlement and may require alternative approaches.
How is debt settlement different from debt consolidation?
Debt consolidation combines multiple debts into one loan, which can simplify payments but doesn’t reduce the total amount owed. Debt settlement, on the other hand, seeks to reduce your total debt amount through negotiation.
FAQ: Personal Injury and Wrongful Death Claims
How long do I have to file a personal injury claim?
Alabama has a two-year statute of limitations on personal injury claims, which means you have two years from the date of the accident to file your claim.
What should I do immediately after an accident?
Prioritize your health first by seeking medical attention. Afterward, document everything you can—photos, witness statements, and any details about the incident—and consult with a personal injury attorney as soon as possible.
Can I file a claim if I was partially at fault?
Alabama follows a “contributory negligence” rule, meaning that if you’re found even slightly at fault, you may be barred from recovering damages. Consulting with an experienced attorney can help assess your eligibility to pursue a claim.
What compensation am I entitled to for a wrongful death claim?
In Alabama, wrongful death claims seek punitive damages aimed at punishing the wrongdoer rather than compensating for economic losses. Each state has unique wrongful death statutes, so consult an attorney for specific guidance on your case.
What if the insurance company offers me a quick settlement?
It’s generally not in your best interest to accept a settlement without consulting an attorney. Insurance companies aim to minimize payouts, and a fast settlement offer may not cover all of your current and future expenses. We can evaluate the offer and negotiate for a fair settlement on your behalf.
